LIBERIA DEMOCRATIC INSTITUTE (LDI)

LEADERSHIP AND ADVOCACY TRAINING WORKSHOP:

”Empowering Indigenous Communities to claim stake in the Management and Utilization of Extractive
Resources”
CITY HALL, ZWEDRU CITY, GRAND GEDEH COUNTY
Liberia, West Africa

JANUARY 28, 2008

KEYNOTE SPEECH:
“Development of Liberia’s Extractive Industry”: The Challenges of
Grassroots Participation and Empowerment for Change.

BY:
MR. GLEH HUSTON APPLETON
Officer-In-Charge
Zwedru Sub-Office
UNITED NATIONS DEVELOPMENT PROGRAMME-LIBERIA

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 Collection of:
Gleh H. Appleton Private Library
Gbarngbar Town Community
Roberts Field High, Monrovia, Liberia
West Africa
Email: gleh.appleton@gmail.com, ghapple2003@yahoo.com
Tel: +231-6-580184

June 14, 2008

Mr. Superintendent, and Other officials of Government here present;

Members of the United Nations Family and International Non-
Governmental Institutions, Chiefs, Elders, and other prominent
stakeholders here present, The Leadership of Liberia Democratic Institute,
Distinguished Guests, My very important Audience, fellow Liberians;
Ladies and Gentlemen

I bring you greetings from the UNDP-Resident Representative: Mr. Jordan

Rhyne, UNDP Country Director: Mr. Dominic Sam, and the Senior
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Management Team. They congratulate you for this noble initiative in
promoting and empowering informed participation of fellow Liberians at
the grassroots level on their roles, duties and responsibilities as pertain to
the extraction of natural resources enshrined in the Liberia Extractive
Industries Transparency Initiative (LEITI) which was launched on 10 July,
2007.

We acknowledge that as the nation transitions from the ash-pan of war to

the glory of peace and sustainable development, this is a major step forward
in the right direction aimed at promoting grassroots participation within the
framework of achieving the National Poverty Reduction Strategy linking the
effects of community participation in Post-war Liberia Reconstruction to
the dream of attaining long term sustainable and durable peace for all
Liberians, irrespective of geographic location, socioeconomic status, political
affiliations and the likes.

My very important Audience, having being invited to address this occasion,

I wish to present to you today for our discussion: “Development of Liberia
Extractive Industry”: The Challenges of Grassroots Participation and
Empowerment for Change”.

Historical Context:
Practices and studies of governance around the world have shown that when
there is good governance, the natural resources (iron ore, gold, diamond,
timber, etc) of a nation can be important stimuli for growth and sustainable
development; while, when governance is bad, the misuse of these resources
can lead to abject poverty, corruption, and consequently conflict. And this
has been the case with Liberia ever since.

I wish you to understand that the mismanagement of the mineral and forest
resources sector has long been a vital component of political and economic
controversies in Liberia. Historical accounts reveal that even though
during the nineteenth century and toward the mid 20th Century,
the Liberian economy was heavily dependent upon foreign aids, with
very little base for economic sustenance, the
Government’s primary source of income during this
period was customs revenue complemented by accruing
external debts. By 1912, Liberia had accrued a total
external debt of 2.7 million USD, 80% of which was
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crudely mismanaged, thereby subjecting the majority of
its people, about 95% of its population, with specific
reference to the indigenous, to further and acute
poverty.

I wish you to also understand that as early as 1871; bad

governance had resulted to the first civilian coup in
Africa which led to the assassination of President Edwin
James Roye over public funds mismanagement. The flow
of bad governance in 1926 saw a major concession
agreement signed between Firestone Rubber
Cooperation and the Government of Liberia over a 99-yr
lease of indigenous owned land with no recompense to
the aged old custodians. Than, there was an attempt, in
the Liberia Economic History; to foster economic growth
between 1944 and 1971 when President William V. S.
Tubman launched the “Open Door Policy”; which became
a watershed to foreign investment with specific
emphasis on the Extractive Industry of Liberia. With the
coming of foreign companies, between 1944 and 1960,
total foreign investment in Liberia increased from $32
million to $436 million; and total exports rose from $10.3
million in 1944, to $83 million in 1960 respectively (Liberian
History: 1826-2004).

My fellow Liberians, let us recount that despite the substantial economic

growth experienced by Liberia during this period, the effect and impact
were the opposite. Corruption was on the increase, while the majority of the
people suffered marginalization and exclusion in decisions leading to the
management of their resources. The socioeconomic gap became deeper and
deeper as the rich elite class of Liberians in Government and the private
sector became richer, while the poor and indigenous Liberians outside of
Government became poorer and poorer. This was a time in the Nation’s
history when Government became unquestionable and unanswerable by and
to the masses whom it claimed to have served. It is important to recount that
the agreements aforementioned were negotiated behind closed doors and
had no recompense for community benefits.

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Still on the historical accounts, between 1971 and 1977, there was a major
shift in the Government’s interactions with the private sector. For the first
time in the history of our nation the “Sacred Concession Agreements” were
being revealed and renegotiated with the intend of enshrining the
“Community benefits” in appreciation to the indigenous owners and
custodians of these natural resources for their protection, preservation and
management over the years. Foreign companies were being audited for the
first time in Liberia, making them accountable and responsible to the
people. Hence, from 1971 to 1977, Government revenue rose
at an annual rate of 18 percent, from $69.9 million to
$156.0 million respectively.

It is regrettable to note, my friends, that the time

between the 1980s and 1990s is recounted as the most
dreadful and mournful periods in Liberia’s political and
economic history. This period, I believe, brought to
climax the resultant circumstances caused by the gross
mismanagement of the Nation’s financial and natural
resources and the deep marginalization suffered by the
great majority of its people for more than a century.
What resulted during this period was the unacceptable
and unspeakable rise in corruption, the gross abuse of
human and peoples rights, the untold and unbearable
economic hardship of the masses, a drop in the
educational standards and finally a dreadful civil war
which caused the death of at least 250,000 Liberians and
displaced about a million people both internally and as
refugees in neighboring countries.

Present Situation:
My fellow Liberians, as we have used the last few moments to discuss from
whence we’ve come, it is also important to assess where we are right now.
And I wish to let know that despite the above circumstances, Liberia
possesses great potentials and has made tremendous successes thus far.

Geographical accounts reveal that Liberia possesses approximately 40% of

West Africa’s Tropical Rain Forest, coupled with other natural resources
such as “Iron ore, rubber, timber, diamonds, gold, and tin.” While it is also
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believed that there may be sizable deposits of crude oil along the Atlantic
Coast, the Agricultural Sector possesses rich potential for products such as
coffee, cocoa, sugarcane, rice, cassava, palm oil, bananas, plantains, citrus,
pineapple, sweet potatoes, corn, and the list goes on and on. Currently,
Liberia's few earnings come primarily from rubber exports and revenues
from its maritime registry program which is counted as the second-largest
in the world; there are more than 2,350 vessels registered under the
Liberian flag, and some 35% of the oil imported to the United States is
transported on Liberian-flagged ships. The country earned almost $12
million from maritime revenue in the year 2006/2007 (July 1-June 30),
accounting for 9% of its total revenues.

My Friends, amongst the great and vast potentials of Liberia is her

untapped human resource. The youth and young people account for
approximately 50% of the Nation’s population. It is evident that this group
will become the most dominant group in society, most affected by change
and also the most likely agents of change.

As we are all aware, the 1989-2003 civil-wars had a devastating effect on the
country's economy. Most major businesses were destroyed or heavily
damaged, and most foreign investors and businesses left the country.
Legally, the Iron ore production stopped completely, and so was logging as
the United Nations banned timber and diamond exports from Liberia, hence
elicit mining became prominent. As you are aware, the revenues from
Natural Resources over the last 14-years of nation’s dreadful path, have
been used to fuel further human destruction both domestic and
international, resulting to the UN further sanctions on Liberian Extractive
Industry.

My Fellow Liberians, I have come to tell you that despite these unspeakable
pasts, there is light at the end of the tunnel and our day is about to break.
We currently have a democratically elected government in place, we have
the Governance and Economic Management Program (GEMAP) running in
Liberia; which is designed to help the Liberian Government raise and spend
revenues in a more efficient and transparent way. Liberia is gaining more
technical assistance from international partners in helping to make key
economic reforms to attract investment and qualify for eventual debt relief
under the Heavily Indebted Poor Countries (HIPC) initiative; while foreign
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direct investment is attracted by the more stable security situation provided
by the large UN peacekeeping force and the demonstrated commitment to
reform on the part of the Liberian Government. We now see investors
seeking opportunities in mining, rubber, agro-forestry, light industry, and
other sectors as the Liberian Government is engaged in negotiations with
several other large foreign investors. The sanction on timber was removed in
2006 as activity in the timber sector is expected to resume on a large scale by
May of this year. Diamond sanctions were terminated by the UN Security
Council in April 2007, and Liberian diamond exports have resumed through
the Kimberley Process Certification Scheme. There is increasing interest in
the possibility of exploiting offshore crude oil deposits along Liberia's
Atlantic Coast. (U S State Department official website: Liberia Country Profile 2007). With all this, I say to you
that there is light at the end of the tunnel now.

As we have gathered here today to launch this awareness and training on

the “Benefits of communities” in “The Reformed Forestry Law of Liberia”,
which calls for a 30% direct payback scheme for the extraction of natural
resources to communities of direct participation, we see another window of
opportunity for participatory engagement, empowerment and change. But
as we grace these vast opportunities and reassess our potentials for change
with specific emphasis on ensuring “Community participation and
Empowerment for Change”, we must note that there are challenges that
must be overcome. And to overcome these challenges, it is about time that
we get involved from the grassroots level. And in an attempt to do so, it is
just expedient that we (All Liberians, the Chiefs, Elders, Zoes, Youths, and
Women Groups at the community level including the Liberians in the
Professional class) ask ourselves the question:

WHERE DO WE GO FROM HERE?

This speech may not have all of the answers to this question, but I wish to
recommend a few suggestions that could serve as strategies in addressing
this question. First, we must all know that to every opportunity comes a
responsibility. Now, within the framework of the “National Community
Benefit Sharing Scheme”, there are individual and collective duties and
responsibilities of all stakeholders in ensuring that the process works. And
these stakeholders include the Government, the international community,
the Civil Society institutions, the business community and the local
community members at large.
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And my suggestions shall be placed in four dimensions as follow:
1. The Role of Government:
In Liberia, my people, we have a tradition of saying things we do not mean
to do. If we were to check our national records, we will see dossier of
beautiful policies and strategies meant to be implemented over the decades
but remained locked up for national references. But to you, the
Government, I say, if there must be change in the lives of our people, this
impetus must come from you. The people need you not to divert from your
policy role, but to also engage them in the process of these policy
formulations as has been indicated in the ongoing County Development
Agenda. This will not only give them a stake in issues of national concerns,
but will also prepare our youths at the community level involved in this
process for informed leadership roles and responsibility to their people. By
this, you will command the respect, trust and confidence of the gross-rooters
and strategically prepare your exit strategy as these youths mature into
national leadership.

But as we speak of grassroots participation and empowerment, we also call

upon you to begin to create and empower those institutions that would build
the capacity of the people at the community levels to make right their
priorities in the use of their 30% shares. By this, we ask you to only improve
their capacities for making informed decisions and not to make the decisions
for them yourselves. We call upon the office of the superintendent and local
county officials to facilitate this process while at the same time playing a les-
a-fare role in direct decisions. But the communities depend on you also to
lead the process of nation building. Please lead well.

2. The Role of the International Community:

To my colleagues in the UN Family and other international Non-
Governmental Institutions, including donor nations and friendly
governments, we have a very crucial role to play in the process of
empowering these communities for participatory engagements along the
ladder of sustainable development. As we’ve worked with the people and
government of Liberia in successfully transitioning the country from
emergency to the process of national recovery, it is time to complete the
process from recovery to sustainable development. Along this line, I wish to
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remind us that unless we drive our partners; including the respective
communities in which we have direct impact, through the process of
capacity building, history is doomed to repeat itself. As it is often said, and I
state that “there is a 70% possibility that a country from war may return to
war within its first five post-war years”. I believe that all this is predicated
upon the capacity of the system to sustain the process of peace building in
the midst of complexities. This is the stage of Liberia now. The communities
say they need us more than before. They need us to mainstream capacity
building strategies in our recovery and development programming and
planning for change. As we carry on our interventions, let us note that we
will one day face out of this mode of intervention. And as we design our exit
strategies, let us seek to answer the question, “What do we want Liberia to
be after here?” Please keep this in mind.
3. The Role of the Civil Society Institutions:
It is often said that the Civil Society institutions bear the conscience of the
nation. And I believe very well that the Liberian Civil Society institutions
have started to play their inevitable role. But as you gear up to play this role,
please note that the entire interior of Liberia still suffers exclusion as major
social activities necessary for stimulating rural participation in the national
democracy reform process are still lacking. For instance, the local dailies are
only run in Monrovia with no semblance of extension to the interior,
governance decentralization is still far from taking roots. In the wake of the
above, if Liberia must move away from the deep rooted social and economic
stagnation to a more sustainable and participatory democratic process, the
Rural Civil Society Movements of Liberia must champion the cause of rural
grass-roots appraisal and participation in the national reform process
precipitating the “New wave of change” through a strategic capacity
development and grass-roots information sensitization process stemmed
within the framework of community-based governance reform.

You must not move away from your traditional watch-dog role. But you
must complement this role with adequate community-based capacity
building initiatives through civic education and awareness that would stare
up local communities’ participation for positive and developmental Change.
Let us note now that unless communities wake up to action, they can not
claim their stake in national development. Note in all of your actions that as
you advocate for change, you have a responsibility to prepare the minds of
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the masses for that change because there are challenges on the way to effect
positive, durable and sustainable change. Please play your role well.
4. The Role of the Local Communities at large:
To you the community leaders, you are the mediators between your people,
the government and other partners. I am sure some of you will become part
of the Community Forestry Development Committees which will be
responsible to implement community-based projects at the community level.
But I want you to understand a few things. It is not Government that will
identify your projects anymore. It is you. Your time has come to carry on the
change you longed for. Accept this change and make use of the opportunity.
Now it is not the UN and the NGOs that are asking you to participate in
making your own decisions on issues that affect you. The Government is also
asking you to participate at your levels. Your people will also be sending you
to represent them in these decisions.

Through the years you have played your parts well. But I am sure this is a
bigger challenge and you are thinking and asking yourselves, but how do we
begin. Well, I can show you a few ways of how you can begin:

First, ensure “Participation and Collectivism”, in all of your actions. Hold

on to your good and common beliefs, perceptions and values, maintaining
your high level of interactions necessary for developing joint approaches to
solving your common problem. You must believe that nothing overcomes
you as you work together for a common goal especially if that goal is
community-driven.

Second, build your “Resilience and Reflex Capacities” as one people in

action for change. By this, I mean, building self and collective courage,
resistance, resilience, confidence, motivation and the will-power to
transforming and solving any problem no matter the gravity. As leaders of
your communities, you shall endeavor to encourage your community
members toward collectively combating social and economic problems
aimed at improving your living standards and developing your capacities as
the engineer for effective and sustainable change.

Third, believe your “Resourcefulness and take Ownership”. I hold it to be

true that communities are extremely resourceful and have a lot to contribute
toward their own development process. You do not need help. What you
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need is empowerment to make a positive change. And you have the
resources to tap from to make this change happen. Some basic resources
available within your community include; a) labor b) natural resources c)
money d) machines e) expertise f) identified community structures and
institutions as well as infrastructures, etc. In the case of initiative
development, it is logical to tap from available community resources for
community effectiveness, ownership and participation over a common
objective. These are your potentials, please tap from them and make a
positive impact on your communities. And

Fourth, take on “Agility and be Initiative Driven”. I am also convinced that

community members are willing to take the lead and the responsibility for
their own development and are committed for a positive change based on
common interest. Develop the interest of your respective communities,
interests that would impact the lives of your fellow community members
through the development of new initiatives.

Please remember that above all else in this process, you are the prime
stimuli precipitating community participation and empowerment for change
at all levels because you are the direct participants and the direct
beneficiaries in these processes.

I believe, my follow Liberians that if all of us, stakeholders, work together

along this process of change, accommodating each and every component of
change, truly we shall succeed in overcoming the Challenges of promoting
Grassroots Participation and Empowerment for Change in Liberia
commencing with the “Development of Liberia Extractive Industry”.

I thank you.

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